YANCOAL AUS (03668.HK): Completes Acquisition of 80% Interest in Kestrel

NewTimeSpace News: On 1 October 2026, Yancoal Australia Ltd (stock code: 03668) announced that it has completed the transaction with EMR Capital Advisors Pty Ltd, Kestrel Coal (EMR) Limited and Adaro Capital Limited, acquiring the entire share capital of Kestrel Coal Group Pty Ltd (KCG), which holds an 80% interest in the Kestrel Coal Mine in Queensland's Bowen Basin.

The announcement disclosed that the upfront cash consideration paid on completion was USD 1.85 billion, subject to customary completion adjustments, including deduction of the USD 40 million deposit paid on signing and other provisional adjustments for net debt and working capital. The consideration was funded through a combination of available cash and an initial utilisation of a five-year syndicated USD 1.2 billion acquisition loan facility, part of which is expected to be used to retire existing debt within the KCG Group. A USD 200 million, five-year committed working capital facility remains undrawn.

Yancoal will recognise its interest in the attributable Kestrel production, revenue and earnings from 1 October 2026. Payment of contingent cash consideration of up to a maximum total of USD 550 million remains dependent upon the benchmark coal price exceeding USD 225 per tonne (nominal) in any of the first five years following completion. The Company expects to dispatch to shareholders a circular containing further details of the acquisition and accountants' reports, a competent person's report and a valuation report on KCG by 23 November 2026. Mitsui, the joint venture partner, holds the remaining 20% of Kestrel.

NewTimeSpace Disclaimer: All content herein is the original work of NewTimeSpace. Any reproduction, reprinting, or use of this content in any other manner must clearly indicate the source as "NewTimeSpace". NewTimeSpace and its authorized third-party information providers strive to ensure the accuracy and reliability of the data, but do not guarantee the absolute correctness thereof. This content is for reference only and does not constitute any investment advice. All transaction risks shall be borne by the user.